Bitcoin investors in Asia face volatility over automated ETF trading bots

Investors in Bitcoin based in Asia encounter market fluctuations due to the influence of automated trading bots triggered by data from American Bitcoin ETFs. These bots may cause price shifts.

In Asia, Bitcoin investors face rough waters as they try to manage price fluctuations, potentially caused by trading bots responding to information from Bitcoin ETFs on the open market, according to Bloomberg’s sources in the cryptocurrency industry.

Shiliang Tang, president of Arbelos Markets, emphasized the importance of automated bots. He explained that from a trading standpoint using algorithms, bots have the ability to automatically gather data and execute trades accordingly.

“It seems that’s basically what is happening.”

Shiliang Tang

On April 2, the price of Bitcoin took a sharp dip during Asian trading hours, aligning with signs of investors pulling out funds from ETFs. Data from Coinglass reveals that Bitcoin’s price plummeted to $64,650 in an instant, resulting in approximately a 6% decrease within a day. This sudden drop triggered heightened volatility throughout the broader crypto market. At the time of writing, Bitcoin is priced at $66,346 based on CoinGecko’s data.

Bitcoin investors in Asia face volatility over automated ETF trading bots

In early January, the SEC approved several Bitcoin ETF applications, leading to around $12 billion in new investments. This influx peaked when Bitcoin reached a record high of $73,798 in mid-March. However, since then, there have been outflows causing Bitcoin to drop about 11% from its peak.

Michael Novogratz, CEO of Galaxy Digital, had suggested earlier in March that corrections and market consolidation were possible before Bitcoin reached new peaks. Even with the current heated market conditions, Novogratz remains hopeful about the future, believing that the SEC may approve Ethereum spot ETFs by the end of the year.

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2024-04-03 11:02